The Bureau of Industry and Security is proposing new requirements to report offset agreements for exports now controlled under the “600 series” of the Export Administration Regulations (EAR) Commerce Control List. Reporting to BIS of offset agreements -- compensation to the purchaser as a condition of sales of defense articles, including coproduction, technology transfer, subcontracting, credit assistance, training, licensed production, investment, and other purchases – has been required since the 1990s for exports of articles listed on the U.S. Munitions List. With the transfer of certain items from the USML to the CCL’s 600-series under export control reform, BIS is proposing to continue offset reporting for those transferred items. Offset reporting would also be required for items added to the 600-series that were not previously listed on the USML. It would not be required for submersible and semi-submersible cargo transport vessels and related items that are not on control lists of any of the multilateral export control regimes that count the U.S. as a member. Comments on the proposed rule are due Feb. 1.

The Bureau of Industry and Security (here) and State Department (here) revealed their respective plans to clarify and harmonize export control regulations, in their sections of the Fall 2015 Unified Agenda. BIS now plans to issue a proposed rule in February based on comments it received on harmonizing the BIS Export Administration Regulations with the State Department’s International Traffic in Arms Regulations (see 1505210043). BIS also said it intends to finalize proposals to harmonize EAR definitions with the ITAR in December, though the State Department’s schedule doesn’t show its concurrent rule being issued until May (see 1506020016). BIS said changes to harmonize EAR destination control statements with the ITAR are set for February (see 1505210063).

The Trans-Pacific Partnership will cut critical consumer and chemical goods access barriers on U.S. exports to TPP members that the U.S. doesn’t currently share free trade agreements with, the Commerce Department said in a set of reports released on Nov. 6. The reports surfaced just a day after TPP parties unveiled the pact’s heavily-anticipated legal text (see 1511050020).

U.S. agencies are increasingly collaborating in developing export regulations, bringing more integration and effectiveness to the administration in that policy field, top-ranking officials from the Commerce, State, Defense and Treasury departments said during a Nov. 3 panel at the Bureau of Industry and Security’s 2015 Update conference. The administration isn’t yet ready to overcome ongoing challenges in its drive to create a single licensing agency for exports, but that effort continues, said Directorate of Defense Trade Controls Deputy Assistant Director Brian Nilsson. BIS officials made a strong pitch for that single agency, which they refer to as Phase III of Export Control Reform, the day before (see 1511020024).

The Office of Foreign Assets Control temporarily lifted sanctions on Oct. 30 on nine Belarusian commercial entities, paving the way for possible imports from and exports to those companies, OFAC said (here). That authorization expires on April 30, 2016, unless otherwise extended. A 2006 executive order blocked all dealings with those entities and others. U.S. persons that engage in authorized transactions with the companies that exceed $10,000 will have to file a report with the State Department, OFAC said in the release.

The State Department and Bureau of Industry and Security on Oct. 9 launched concurrent reviews of several recently updated categories of export controls covering surface vessels of war, military ground vehicles, miscellaneous military articles and materials, and submersible vessels. State’s inquiry is focused on whether revised U.S. Munitions List categories VI, VII, VIII and XX remain clear and up to date (here). BIS is asking for comments on the clarity and usability of new 600-series export controls created for dual-use items moved over from those four categories to the Commerce Control List (here). Comments to both agencies are due Dec. 8.

Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to add to the Unverified List 12 entities with addresses in Czech Republic, Georgia, Hong Kong, and the United Arab Emirates. The agency's final rule (here) also removes two companies, Ditis Hong Kong and Fauji Fertilizer of Pakistan, that had previously been listed, and adds new addresses for four currently listed companies. The Unverified List includes entities for which the U.S. government failed to complete satisfactory end-use checks, and therefore could not verify the entities' bona fides. Additions to the list are as follows:

The Satellite Industry Association is urging Congress to reauthorize the Export-Import Bank. Without it, "U.S. commercial satellite manufacturers are increasingly uncompetitive in a global marketplace where foreign buyers account for roughly 75 percent of all commercial satellite sales," said SIA President Tom Stroup in a statement (here). According to SIA, since its virtual shutdown July 1, U.S. companies have seen at least three commercial satellite orders withdrawn and not been able to take part in a number of other competitions. "This is just the tip of the iceberg," Stroup said. "In the highly competitive commercial satellite manufacturing market, support from export credit agencies (ECAs) can be the difference between the winning proposal and a competitive one. And in some cases, ECA support is a required component of the proposal. The longer the Ex-Im Bank remains closed, the greater the damage will be to U.S. satellite manufacturers and the hundreds of local businesses that supply them."

The virtual shutdown of the Export-Import Bank is having devastating consequences on the U.S. commercial satellite industry, industry experts said Sept. 21 at a Washington Space Business Roundtable lunch. "It's embarrassing we're not open for business," said Jeff Trauberman, Boeing vice president-Space, Intelligence and Missile Defense Systems.

The South African government will slash antidumping duties on 65,000 metric tons of U.S. bone-in poultry exports by the end of this year, the South African Trade and Agriculture departments said on Sept. 15 (here). The release said South Africa will also finalize “terms and conditions” to accept U.S. Food Safety Inspection Service export certificates by Oct. 15 in order to allow U.S. poultry exports by the end of 2015.